VA Loan Information and FAQs | United Wholesale Lending
United Wholesale Lending is a professional mortgage broker offering VA loan options in the Greater Sacramento Area.
Learn About Qualifying For a VA Loan Today!
Contact our team of VA loan mortgage experts to learn more about our qualifying terms and ask any questions you may have. We look forward to helping you get funding for the home of your dreams.
What is a VA Loan?
A VA loan is a special mortgage option available through the US Department of Veterans Affairs for veterans, service members, and their surviving spouses to purchase homes with little to no down payment. VA loans also typically come without mortgage insurance and a competitive interest rate compared to other traditional or FHA mortgage options.
VA Loan Eligibility Requirements
There are some requirements applicable to VA loan funding. You will need to meet at least one of the following:
- 90 days of service during wartime;
- 181 continuous days of active service during peacetime;
- 6 or more years of service in the National Guard or Reserves;
- Being the un-remarried, surviving spouse of a service member who died in the line of duty or as a result of a service-related disability;
- Must have DD214 with an honorable discharge
There is typically a requirement for borrowers to move into the property within 60 days after purchase and that it must be used as the primary residence. This means you cannot use a VA loan for renting out the property as an investment.
How Do VA Loans Work?
The VA will dictate all terms of the mortgages they offer. This includes the qualifying standards as outlined in the above section. The VA does not actually back the loans despite setting the terms. Instead, these loans are provided by private mortgage lenders like United Wholesale Lending.
Prior to applying for the loan, potential applicants will need to provide us with a certificate of eligibility from the VA. Service-related documentation will need to be produced. The type of documentation varies based on your duty status. You can find the certificate on the VA website.
VA Loan Terms
Part of the advantage of VA loans is that their terms are a lot more generous than other conventional options. Some of the benefits include:
- No down payments (unless otherwise required by the private lender or if the purchase price is above the property value)
- No private mortgage insurance requirement
- Closing costs are paid by the seller
- No payment penalty for borrowers who pay off loan early
- VA can provide assistance to help borrowers avoid default
Other Benefits of VA Loans
- Lower interest rates are available
- Reduced funding fees (you may even qualify for exemption from VA funding fees)
- You can finance the VA funding fee into the total loan amount
- Greater range of credit scores accepted
- 90% cash-out refinance available (this means you can use your home’s value and pull cash out to pay off debt or do repair or remodeling work to the home)
How Our VA Loan Process Works
Get Your Certificate of Eligibility (COE)
You will need a COE to be eligible for a loan. This requires providing proof of military service. Be sure to communicate whether you need assistance getting your COE early in the process, as we can help you obtain it.
Getting preapproved is a great way of showing lenders that you are serious about obtaining a loan. It also helps to speed up the process. Preapprovals give you a solid idea of what type of funding you can receive. Sellers will also take your offer more seriously if a preapproval letter is attached.
Find Your Home
The home shopping process with a VA loan is similar to that with a conventional or FHA loan. The home must meet the VA’s minimum property requirements, which require that the property be safe, sanitary, and structurally sound.
Make an Offer
Once you find a home that meets the VA’s minimum property requirements and is within your budget, go ahead and make an offer through your realtor. Once the offer is accepted, the realtor can help you draw up a sales contract.
VA Appraisal and Underwriting
Our underwriters will go through and assess your finances to make sure you can qualify for a VA home loan. The VA will also require an appraisal prior to approving the loan. These appraisals are often stricter than those of conventional loans, but they do ensure the home is of high quality.
Close on Your New Home
Once the property is determined to meet the VA’s minimum requirements and your finances have passed the assessment, we will fund your VA loan and get you through the closing process. From there, you will receive the keys to your new home and can move in!
Types of VA Loans Available
There are multiple types of mortgage loans available for veterans.
Home Purchase Loans
These are your traditional purchase loan options (similar to conventional or FHA). VA home purchase loans come with competitive interest rates and do not require down payments or private mortgage insurance.
Cash-Out Refinance Loans
Cash-out refinance loans allow borrowers to borrow against their home equity to pay off their debts, fund their education, or make home improvements. This option creates a new mortgage higher than the existing term and converts your home equity into cash.
Interest Rate Reduction Refinance Loan
Interest rate reduction refinance loans, otherwise known as IRRRLs, assist borrowers with obtaining a lower interest rate by refinancing their current VA loan. This option allows borrowers to convert their existing fixed-rate mortgage to a lower rate or their adjustable-rate mortgage into a fixed-rate mortgage.
Native American Direct Loan
The Native American Direct Loan program is reserved for Native American veterans looking to finance either purchase, construction, or improvement of homes on federal trust land. These loans often come with even lower interest rates.
Important Items to Consider with VA Loans
There is a strict requirement for a cleared pest inspection on the property. Lenders can charge up to a 1% origination fee on your loan (that is the maximum).
Childcare and transportation expenses are factored into qualifying consideration. Your partner may not co-sign for the applying veteran unless you are legally married. A married spouse’s debts will count against the applying veteran.
Contact Us to Get Started
Ready to apply for a VA loan in Sacramento? Contact our loan experts at United Wholesale Lending to kick off the process and get you your funding fast. We are happy to answer any questions you may have.
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